Panama in 1994

Originally published in the Britannica Book of the Year. Presented as archival content. Learn more.

This article was originally published in the Britannica Book of the Year, an annual print publication that
provides an overview of the year’s most-notable people and events.
Unlike most articles on Britannica.com, Book of the Year articles are not reviewed and revised after their initial publication.
Rather, they are presented on the site as archival content, intended for historical reference only.

Watched by 2,000 local and international observers, the May 1994 general elections were largely incident-free and were praised for their openness. The winner of the presidency was Ernesto Pérez Balladares of the Democratic Revolutionary Party, whose campaign invoked memories of the party’s founder, Omar Torrijos, and successfully avoided links with its more recent, now discredited, leader, Manuel Noriega. In second place was Mireya Moscoso de Gruber of the Arnulfista Party, led by the outgoing president, Guillermo Endara Galimany. Third was salsa star and actor Rubén Blades (see BIOGRAPHIES), whose party, Papa Egoró (Mother Earth), in its electoral debut, won six seats in the legislature.

Despite economic improvements (rising international reserves, a forecast 4.6% growth of gross domestic product in 1994, and declining unemployment), Endara’s administration failed to reduce poverty and an annual debt-service bill of about $900 million. Endara also failed to eliminate drug trafficking and corruption, accusations of which tainted his last days in office. Pérez Balladares pledged to end Panama’s key role in the narcotics and money-laundering network.

Under the 1977 Panama Canal Treaty, the first U.S. Southern Command troops left Panama in June. Pérez Balladares, who met with U.S. Pres. Bill Clinton in July, said that Panama would consult with the U.S. to ensure the best management of the canal up to and after the year 2000.

On October 13 former Haitian junta leaders Lieut. Gen. Raoul Cédras and Brig. Gen. Philippe Biamby and their families arrived in Panama. At the request of the U.S., Panama had granted them asylum to help restore democracy in Haiti. They were given modest quarters near the airport, but some accused Pérez Balladares of complying with a U.S. request not in Panama’s best interest. Ben Box

Learn More in these related articles:

country of Central America located on the Isthmus of Panama, the narrow bridge of land that connects North and South America. Embracing the isthmus and more than 1,600 islands off its Atlantic and Pacific coasts, the tropical nation is renowned as the site of the Panama Canal, which cuts through...